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OptionSellers.com Implodes

It's often said about option selling that "you eat like a bird and **** like an elephant",meaning one makes small gains while risking huge losses. As with this http://www.realscam.com/f12/short-vo...-implode-5146/, years of gains can be wiped out in a short period of time if risk isn't managed.

Step forward James Cordier aka Dumbo, who not only lost all his clients money but left them on the hook for the additional losses. The guy had a book, TV appearances, and a blog why not send him some cash?

James Cordier
Medium-term horizon, hedge fund manager, commodities
Member Since 2009
Company: OptionSellers.com
James Cordier is the founder of OptionSellers.com, an investment firm specializing exclusively in selling options. He is also author of McGraw-Hills The Complete Guide to Option Selling - recently published in it's 3rd Edition. James' market comments are published by several international financial publications and worldwide news services including CNBC, The Wall Street Journal, Fox Business, Reuters World News, Bloomberg Television and MarketWatch.

"Here’s how the fund's manager, James Cordier, described his strategy in a book titled, The Complete Guide to Options Selling:

While writing naked options may sound outrageously aggressive and even frightening to some, if it is done correctly, one should be able to sleep very well at night. The downside, of course, is that the market potentially can exceed your risk parameter."

"One macro hedge fund founder faulted both Cordier and his investors for the outcome. “The nature of the strategy is that you make a little bit of money until you blow up,” the manager said late Wednesday on the condition of anonymity. “The probability of losing it all is fairly significant. With derivative contracts — if you don’t understand them — you really need to give money to someone you trust, and to couple of them. Have some checks and balances.”

OptionSellers.com “basically took advantage of guys who didn’t know any better,” he continued. “I instantly thought of my grandmother, my grandfather. I honestly was thrown when I heard about it.”